Preliminary data indicates that Indonesian tin metal exports in June were up 23% compared to the previous month but down 11% compared to June last year. Trade ministry statistics released today show that 9,647 tonnes of tin was inspected prior to shipment by surveying companies employed under its export licencing system. The cumulative tonnage checked in the first half of this year amounts to 47,315 tonnes, down by 5.7% compared to January-June 2011.
The seasonal peak in Indonesian production normally occurs at this time of year, although the decline in tin prices since February may have had some adverse impact on mining activity. Expectations that prices may continue to fall and cash flow considerations may have boosted last month’s shipments. “People are worried that the price decline will continue,” Johan Murod, commissioner at Belitung-based smelter PT Tommy Utama, told Bloomberg. “Exporters released inventories to get money for Ramadan and Eid al-Fitr.” Companies are obliged to give bonuses to their employees ahead of the Eid festival that marks the end of the Muslim fasting month of Ramadan. Eid is expected on 19 August this year.
